The European Union parliament plans to vote to block cryptocurrencies that use proof-of-work consensus algorithms on March 14, with the market anticipating a bearish sentiment.
If the proposal sails through, Bitcoin and Ethereum will be forced to shift to the non-PoW consensus models in the phasing out last-minute addition.
The cryptocurrency sector is expected to experience some shocks and a potential price drop based on the outcome.
The draft is anticipated to mitigate the environmental effects of the energy-consuming model and to tighten the possibility of Russia using crypto to evade sanctions.
Circle CEO Jeremy Allaire maintains that the vote is a high stake saying it is unrealistic. Unstoppable Finance’s Patrick Hansen believes that the proposal was most likely to pass.
Darin Feinstein from Core Scientific observes that the EU BTC mining sector takes a mere 0.198% of the region’s energy, calling on the policymakers to project the digital asset.